Arizona Cannabis Market

Big Congratulations to Arizona!

What happens next?

Start your business plan and financial model while the details of the adult-use program are being developed.

Four years after a narrow defeat, Arizona voters said “yes” to adult-use cannabis by a nearly 2-to1 margin. With the passage of Proposition 207, Arizona is expected to see $760 million in adult-use sales by 2024.

With details of the program expected to be finalized relatively quickly, cannabis entrepreneurs should start now for the best shot at winning licenses. While many of the new adult-use licenses are expected to go to existing medical marijuana operators in Arizona, social equity applicants have 26 licenses in play.

Most of the related rulemaking will come from the Arizona Department of Health Services which already oversees the medical marijuana program. What we know currently is that the number of licenses will be tied to the number of pharmacies operating in Arizona as well as the locations of existing medical marijuana businesses.

The Department of Health Services is required to begin accepting adult-use business permit applications from January 19, 2021, but only has a short open window, with a March 9, 2021 deadline. Social equity licenses would be issued, at most, six months after the department finalizes rulemaking.

Revenue projections source: Marijuana Business Daily